The White House is throwing cold water on a private investment group’s proposal to recapitalize Fannie Mae and Freddie Mac, the giant government-owned and government–backed mortgage companies.
Under current law, JPMorgan can deduct its $5.1 billion settlement with Fannie Mae and Freddie Mac from its taxes. Some Democrats are trying to change that.
The government is trying to wind down Fannie Mae and Freddie Mac, which could really change the mortgage picture out there. What can we expect to see if the government-backed companies go private or have a diminished role?
Congress's proposed plans to phase out government-backed mortgage giants Fannie Mae and Freddie Mac will almost certainly mean higher mortgage rates for consumers.